Merdeka Utara 7 Group

Erma has been selling clothes and electronic goods on credit since 2006. She goes around her environment to ask her neighbors whether they need clothes or electronic goods but can not buy it with cash. If so, she will help them by providing the items and her customer will pay her on credit. Now she has a lot of customers. This time she plans to use her part of the loan to buy four televisions that were ordered by her customers. She likes to run this business because she can still have more time at home to take care of her children who are still in school. With her income, she can help her husband, who works as a driver in the port, to have extra income to pay their children's school fees. In the future, she wants to expand her business and hopefully get more customers.

Additional Information

About VisionFund Indonesia

VisionFund Indonesia is a Christian micro venture capital organization owned by Mitra Masyarakat Sejahtera (MMS) and Wahana Visi Indonesia. Founded in 2000, VFI operates in both Jakarta and Surabaya, the two biggest cities in Indonesia. VFI targets the entrepreneurial poor who have existing microbusinesses for at least 6 months and have no financial access to commercial banks. VFI also provides microinsurance for all clients through a partnership with Allianz insurance company. With nine branches as of 2011, VFI hopes to expand in order to reach underserved microfinance markets in other islands of Indonesia.

This is a Group Loan

In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.

Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.